Number of firms closing in Edinburgh is on the rise

Thousands of businesses in Edinburgh have been closing their doors for good since the end of the pandemic, figures published last year show.

It comes as more businesses in the United Kingdom closed since records began in 2002, surpassing the number of new startups founded for the first year since 2010.

Think tank the Institute for Public Policy Research said the rising number of closing businesses is a "potential warning sign for the British economy", blaming high energy costs and the end of coronavirus pandemic support schemes.

Office for National Statistics figures show around 2250 businesses in Edinburgh ceased trading in 2022 – though this was down from 2,480 the year before.

Some 19,870 businesses were active last year, meaning the 'business death rate' – the percentage of businesses that closed – has fallen to 11.3%.

This is marginally in line with the 'business birth rate' – the percentage of businesses that began trading – of 11.4 per cent, with around 2270 created last year.

Dr George Dibb, head of the IPPR's Centre for Economic Justice, said: "While this isn't unexpected – high energy costs combined with the end of pandemic support schemes would always see a rise in company closures – it might signify that greater business support would have maintained higher economic activity."

Dr Dibb also highlighted regional inequalities in business development, with London and the South East being the only regions in the United Kingdom with an above-average number of highgrowth firms.